Cloud OSS BSS Market Size and Share Analysis by Component (Solution, Service), Enterprise (Large, SME), Cloud (Public, Private, Hybrid), Industry Vertical (IT and Telecom, BFSI, Healthcare and Life science, Consumer Good and Retail, Manufacturing, Media and Entertainment)- Global Industry Demand Forecast to 2030

Market Overview

The cloud OSS BSS market size stood at USD 20,502 million in 2022, and it is expected to grow at a compound annual growth rate of 12.0% during 2022–2030, to reach USD 50,762 million by 2030. This is due to the rising need to reduce CAPEX, the increasing demand for convergent billing systems, the mounting deployment of revenue management systems (RMSs), and the surging adoption of 5G technology.

Moreover, these solutions help organizations to create different and personalized customer experiences, as these are important for increasing revenues, profitability, and customer retention. BSS solutions include telecommunications billing and client relationship management; whereas, OSS solutions include order management, network operations, and network inventory management. Additionally, the OSS solutions that are deployed over the cloud in a software-as-a-service (SaaS) model provide different service providers with a blend of business flexibility and technology at a low cost.

During the COVID-19 pandemic, the cloud OSS BSS industry saw growth in investments related to technological advancements and expansion of operations. This opened the door to new opportunities and made it easier for new players to enter the market. In addition, the integration of service charges into a single invoice increased the demand for convergent billing tools, which, in turn, contributed to the demand for such solutions during the pandemic situation.

Rising Adoption of 5G

Developments in 5G technology aid in automating industrial operations with the help of machine-type communication (MTC) coupled with mobile broadband capability. Additionally, with the deployment of 5G, the virtualization of network functionality helps different companies and public/private operators to share their network functionality and spectrum, which leads to low costs of services.

Also, 5G technology provides higher capacity and reliability, reduced energy usage, dramatically lower latency, and mass connectivity for devices, thus offering better and faster BSS and OSS solutions and services. These solutions help in meeting the need for 5G-enabled space, which is a key factor in how efficiently and quickly companies can cater to the high requirements of their clients.

Increase in Adoption of RMS

The demand for RMSs is increasing due to their features such as management of invoicing, credit limit, payment, and charging. Also, this convergent billing system offers a unified platform to new businesses for rating and pricing. Through this, customers can monitor expenditure and real-time consumption across a particular service or payment mode. Thus, service providers are adopting RMSs to support wholesale, retail, and other enterprise business segments. Further, the rise in the need to centralize individual systems will fuel the application of RMSs and will contribute to the growth in demand for cloud OSS BSS solutions.

Increase in Demand from the IT and Telecom Sector

The IT and telecom category is predicted to expand at the highest rate, of around 13%, over the forecast period. Telecom service providers can monetize their businesses with the help of cloud OSS BSS solutions. The end-to-end business and operational functions such as management of network performance, inventory, fault and billing issues, new product delivery, and customer experience can be optimized and monitored using end-to-end cloud solutions.

With the application of new technology advancements such as IP-based multimedia systems, cloud OSS BSS have emerged as key elements of an operator’s network, which will make the market grow in the coming years.

The increasing demand for cloud and M2M technologies for supporting services is driving the growth of the industry. The rise in the number of mobile customers leads to high demand for such technologies, which makes the network more flexible and diversifiable. To increase the level of customer satisfaction and assuring high-quality services, the telecom sector generates high demand for cloud OSS BSS solutions.

In addition, these solutions are being used by telecom operators for managing companies’ operations to improve customer satisfaction. An increase in the deployment of remote working norms and distant learning policies that have made a high need to install more internet connections, which are dependent on the telecom sector. Moreover, the increasing foreign direct investment (FDI) in the telecom sector drives the cloud OSS BSS market growth. For instance, the FDI cap in the industry had increased from 74% to 100% in India. In October 2021, the Indian government informed about 100% FDI via the automatic route in the sector.

Small and Medium Enterprise Category To Witness the Fastest Growth

The small and medium enterprise category is predicted to expand at the highest rate, of around 12.3%, over the projection timeframe. Small and medium-sized enterprises (SMEs) play very important roles in every community. According to a research article, around 400 million SMEs are operating across the globe, which have accounted for 99% of global organizations. SMEs are creating a lot of job opportunities, making up 60–85% of employment. According to the International Labor Organization, SMEs contribute up to 70% of the world’s GDP.

SMEs widely adopted cloud OSS BSS solutions to increase the skills and knowledge of entrepreneurs and improve operational productivity. Also, more than two-thirds of SMEs have planned to increase their IT budgets and prioritize investments in the upcoming years.

Public Cloud Category To Record the Highest CAGR

The public cloud category is predicted to expand at the highest rate, of around 12.6%, in the coming years. This can be because the public cloud has the property of scalability, and it is infinitely scalable according to the needs of individual enterprises, telecom operators, and government organizations. For this, companies need to pay for the server capacity, which is needed currently, and if the future needs for services increase or decrease, application hosting costs will rise or fall accordingly.

Whereas, requests for server infrastructure are needed in advance for an on-premises deployment of OSS solutions. Using the public cloud, the resources can be made instantly available for smooth operations. This also makes faster deployments of new IT solutions, which enables new services to be applied more quickly. For operators, the public cloud is also cheaper than hosting OSS solutions in their private systems.

Moreover, factors such as flexibility, high speed, and low cost have strengthened the demand for the public cloud. Also, the huge CAPEX involved in setting up infrastructure increases the usage of the public cloud, which makes operators look for a lower total cost of ownership.

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North America Is the Market Leader

North America accounts for the largest market share. This is ascribed to the presence of major industry players and the rise in digital businesses and systems in the region. Moreover, with the surging need to achieve operational efficiency and huge competition among service providers, telecom operators are more focused on the monetization of mobile broadband data services. This factor drives the demand for cloud OSS BSS solutions in the U.S. and Canada.

Whereas, APAC is seeing an exponential demand for these solutions, with the rise in the number of telecom service users, especially in densely populated countries such as India and China, which are also the major markets for mobile phones. Moreover, cloud-based OSS BSS solutions help operators to provide a better customer experience and to look beyond connectivity, as they provide significant customer benefits such as increased conductivity, reduced costs, and automated business processes.

In addition, the growing trend of rapid economic development, network ecosystem, development, FDI, and adoption of smartphones is expected to contribute to the growth of the regional cloud OSS BSS market.

The other important reasons for the high growth rate in the APAC market include the increased spending on IT infrastructure and the growing population, which have resulted in a large customer base for telecom companies. Also, the new mandatory government regulations and the emergence of a wide range of affordable cloud services are together helping in expanding the demand for cloud OSS BSS solutions in the region.

Key Cloud OSS BSS Solutions Providers Are:

• AMDOCS LIMITED
• Telefonaktiebolaget LM Ericsson
• Huawei Technologies Co. Ltd.
• HEWLETT PACKARD ENTERPRISE COMPANY
• International Business Machines Corporation
• Netcracker Technology
• Nokia Corporation
• OPTIVA Inc.
• Oracle Corporation
• ZTE Corporation

Market Size Breakdown by Segment

This fully customizable report gives a detailed analysis of the cloud OSS BSS industry from 2017 to 2030, based on all the relevant segments and geographies.

Based on Component

• Solution
• Service
  • Professional
  • Managed

Based on Enterprise

• Large
• SME

Based on Cloud

• Public
• Private
• Hybrid

Based on Industry Vertical

• IT and Telecom
• BFSI
• Healthcare and Life science
• Consumer Good and Retail
• Manufacturing
• Media and Entertainment

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.